SHENZHEN, China, Jan. 14 /PRNewswire-Asia-FirstCall/ -- China Information Security Technology, Inc., (Nasdaq: CPBY) ("CIST" or the "Company"), a leading total solutions provider of digital security, geographic information, and hospital information systems in China, today announced that its newly signed contracts in the fourth quarter of 2009 were valued at a record high of approximately US$36.73 million, an increase of over 22%, compared to the contracts signed during the third quarter of 2009, and an increase of 30% compared to the fourth quarter of 2008.
During the fourth quarter of 2009, the Company won contracts from clients in 19 provinces and provincial cities in China out of its current market presence in 32. Some important contracts secured in the fourth quarter included:
-- $10 million contract for Phase III of the Shenzhen Residence Card Information Management System; -- $2.3 million contract for the GIS Display System for Shanghai Zhiying Electronics Co., Ltd.; -- $1.8 million contract for the Police-use GIS for Hainan Province Public Security Department; -- $1.3 million contract for the Haikou City Medical Emergency Rescue Center Consolidated Command System; -- $0.5 million contract for the Geographic Information Public Service Platform for the Shanxi Province Geographic Information Center; -- $0.6 million contract for the Shenzhen Maternal and Child Health Hospital Data Sharing and Exchange Service Platform.
Of this quarter's contracts, excluding those of Huipu, 56% were for the Company's Digital Information Security Technology ("DIST") products, 39% were for its Geographic Information Systems ("GIS") products and 5% related to its Digital Hospital Information Systems ("DHIS") products. Management expects that the majority of these contracts will be recognized as revenue in 2010.
Mr. Jiang Huai Lin, Chairman and CEO of the Company, commented, "We are very excited about our record high contract wins in the fourth quarter. The momentum we have been gaining this year from the increased bidding and spending activities of our local governmental customers has repeatedly pushed our contract wins to new record highs each quarter. We believe that this constant growth reflects further customer recognition of the quality of our industry-leading solutions in our core business segments: DIST, GIS and DHIS, all of which have experienced strong growth this quarter. We are particularly pleased with the large contract win from the Shenzhen Municipal Government, who has awarded us with contracts for all three phases of the Shenzhen Residence Card Information Management System project, which we believe reflects the degree of satisfaction and trust they have in us and the work that we have done for them. We expect that these contract wins and the level of our past performance will provide us with a competitive edge as we continue to grow our business throughout China."
The Company has also provided an update on Huipu Electronics (Shenzhen) Co., Ltd. ("Huipu"), which CIST recently acquired. Huipu manufactures four key products: All-In-One PC & TVs, All-In-One Computers, LCD Monitors with SmartTouch, and LCD Multiple Screen Combination Wall Panels. Huipu's OEM and Huipu-branded LCD monitors have been disposed of as the Company continues to integrate Huipu into its business and operations.
Mr. Jiang Huai Lin added, "We continue to feel optimistic about the growth prospects for Huipu Electronics. We believe that its high-end hardware capabilities and respectable market share will enhance the growth of our software business. As a result of our record high contract wins and the addition of this new acquisition, we remain very confident in our ability to achieve our financial goals for 2009 and 2010."
About China Information Security Technology, Inc.
Through its wholly-owned Chinese subsidiary, China Information Security Technology, Inc. ("CIST" or the "Company") headquartered in Shenzhen, China ("PRC"), is a leading application software developer, systems integrator and full-service Geographic Information Systems ("GIS") solutions provider to the public security and civil-use markets in China, dedicated to the use of information technology to improve public safety and information management. Its main business lines range from digital information security, to GIS, and digital hospital information systems. The Company provides a broad portfolio of fully integrated solutions and services, including its First Responder Coordination Platform, Intelligent Border Control System, Residence Card Information Management System, Police- and Civil-use GIS products, and Digital Hospital Information System, to serve the growing demand for digital geographic information, hospital and electronic medical record systems in China. Its commitment to leading-edge technology and quality assurance has won the Company numerous government and enterprise contracts throughout China. To learn more about the Company, please visit its corporate website at http://www.chinacpby.com .
Safe Harbor Statement
This press release may contain certain "forward-looking statements" relating to the business of China Information Security Technology, Inc., and its subsidiary companies. All statements, other than statements of historical fact included herein are "forward-looking statements" including the impact of the fourth quarter 2009 contract wins and the Company's acquisition of Huipu on the Company's business and operations; the general ability of the Company to achieve its commercial objectives; the business strategy, plans and objectives of the Company and its subsidiaries; and any other statements of non-historical information.
These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov ). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
For more information, please contact: Company Contact: China Information Security Technology, Inc. Iris Yan Tel: +86-755-8370-4767 Email: email@example.com Web: http://www.chinacpby.com Investor Relations Contact: ICR: Michael Tieu Tel: +86-10-6599-7960 Email: firstname.lastname@example.org
SOURCE China Information Security Technology, Inc.